Business

Planning

Strategies

and

ResourcesShannon Dill

University of Maryland Extension

Talbot County

Objectives

Greenhouse Industry

Business Planning Guidelines

Business Resources

Greenhouse Business Management

Resources

Driving Forces of the

Greenhouse Industry

Data has been collected to identify “driving forces of the industry”

Identifying driving forces (or trends) are key in strategic planning for a business because it affects the industry in which you are competing

These were identified through focus groups

“Enhancing Profitability in Greenhouse Firms” Natural Resource, Agriculture and Engineering Service Cooperative Extension NRAES-164

Driving Force #1

Environmental Concerns are Increasing

Environmentally friendly plants

Native plants and organic gardening

Availability of chemicals and use will

change

Recycling and composting

Water conservation

Driving Force #2

Regulatory Concerns are Increasing

Irrigation legislation

Worker protection legislation

Research in pest control, alternatives

Chemical disposal methods will be reviewed and monitored

International competitiveness

More paperwork

Insurance rates

Driving Force #3

Communication Technology is Improving

Internet increase availability of production

and marketing information

Scanner data will be used to measure

customer trends

Plant labeling

Faster communication

Driving Force #4

Customers are Becoming more

sophisticated

Demand service at all levels

Demand knowledge and information

Demographic shifts

Customers are more aware of choices

Want to spend less time shopping

Do local research

Driving Force #5

Partnership Marketing is Increasingly

Emphasized

Fewer suppliers

Paperless ordering systems

Better inventory control management will

be possible

Apply the Driving ForcesConsidering your business, location and

customers what are your responses to these forces

Driving forces are external – What can you do internally Trends change keep abreast by data collection

and continued research Be involved in organizations, the state and

community for decision making Meet and talk with customers and employees to

open communication line

Guideline #1

Have a business plan

Mission goal

Production

Financial

Marketing

Management/labor

Can be as elaborate or simple as you want

AgPlan or www.extension.umd.edu/MREDC

Guideline #2

Keep accurate records

Must have accurate records

Taxes

Growing

Inventory

Regulatory

Find a system that works best for you and

stick to it!

Guideline #3

Prepare Financial Statements Yearly

Balance Sheet

Summarizes assets, liabilities (Debt) Net Worth

Income Statement

Summary revenues and expenses for a specific time period, Net Farm Income

Cash Flow (Projected/Actual)

Summarizes all cash in-flows and out-flows

Guideline #4

Track Enterprise Cost and Returns

As farms become more diverse growing

multiple products managers should follow

cost and revenue for each enterprises

For each product or enterprise you will

know your cost of production and income

from there you can make decision to

increase, decrease or stop production

Guideline #5

Prepare and review legal documents

Lease agreements

Estate and farm transfer

Insurance policies

Liability

Employee

Crop

Labor and Human Resource issues

Guideline #6Have a Marketing Plan4 P’s of marketing

Product: needs to standout, why buy your product over someone else’s?

Price: you need to cover costs to make a profit, find the right price

Place: where you market has much to do with how you market

Promotion: can mean the difference between success and failure of marketing

Develop a Written Marketing Plan

Guideline #7

Set up an inventory system

Need to have record of items on hand at

all times

This can be done by hand or electronically

This info can organized and used for

ordering and estimations

Guideline #8

Maintain Good Business Relations and

Communication

Whether it is a customer, vendor or

employee

Customers are looking for service, quality

products and information

You should set an example for employees

to follow

And always

Evaluate

Continue to review your business and

business plan

Update it when necessary

Allow yourself to step back and look at your

business

“New” Marketing

Need the hardware and mobile service

Consider social media

Applications and other software that helps “do business”

Add your farm to directories such as google places

By summer of 2013 smartphones surpassed half of all mobile subscribers.

Are these Tools or Toys?

Why should we care about

apps?

Applications (apps)Decisions, Decisions

Read the reviews

Watch the space you have available

Watch the amount of battery they use

Download from your marketplace not the web

“LITE” versions often have advertisements but are a good way to test the app

Lots of Free ones

Many are from your favorite web service

Grouped – productivity, business, entertainment, social, games, education, lifestyle, sports, news and travel

Other Marketing

QR codes are everywhere

The square "quick response" codes turn URLs,

vCards, or any kind of text into a jumble of

pixels that you can scan onto your smartphone

instantaneously, no typing required.

Must download the app QR/Barcode Scanner

Generate your own online for your marketing

promotions

Apps - accept credit card payments

through a smartphone.

• Do a comparison

• Check the percentage, monthly

and other fees, read reviews,

hardware, what credit cards are

accepted

• GoPayment – check terms and

service

• Pay Anywhere

• SQUARE

Resources

Maryland Rural Enterprise Development

Center

www.extension.umd.edu/MREDC

- Business planning

- one on one assistance

Conclusion

Planning and record keeping is as

important as growing your plants

Schedule and take time to do this

weekly/monthly

References

Starting a Greenhouse Business FS 593, MD

Cooperative Extension

Enhancing Profitability in Greenhouse

Firms” Natural Resource, Agriculture and

Engineering Service Cooperative

Extension NRAES-164